What Did I Miss? Addressing Non-Traditional Reconciliations in AR and Data Integration Design
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Recorded at Kscope 21 Hosted by Seema Shah (Alithya) , Nick Boronski (Oracle) , Lee Drivers (State Street)
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What Did I Miss? Addressing Non-Traditional Reconciliations in AR and Data Integration Design
- 1. Visit our virtual booth daily from 1:40 – 2:20 PM Complete the daily game challenges for Kscope Kode to win!
- 2. Wed. Jun 23rd, 2021 Nick Boronski Lee Divers Seema Shah What Did I Miss? Addressing Non-Traditional Reconciliations in Account Reconciliation and Data Integration Design Kscope Kode Challenge Code: ALITHYAARCS21
- 6. Agenda • What are non-traditional reconciliations? • The State Street story • Questions & Considerations for data integration design
- 7. Speakers Nick Boronski Oracle EPM Solutions Engineer Lee Divers State Street Finance – Global Accounting Operations Seema Shah Alithya Practice Manager
- 8. What are “traditional” reconciliations? • Balance sheet focus • General Ledger to Subledger • Prepaids, Accruals, Reserves, etc. • Detailed cash, credit card, bank, etc. • Multiple currencies • Multiple reporting types (US GAAP, local GAAP, Statutory, etc.)
- 9. After solving one problem we stop looking… …and miss the other “low hanging” fruit
- 10. There’s a lot going on! There can be multiple types of reconciliations… …across many departments and teams… …with different levels of understanding on the tools available to help.
- 11. What are “non-traditional” reconciliations? • Subjective definition • Often exist outside of accounting (but not always!) Within FP&A team: • Actual v. Budget comparisons • Period-over-Period variance analysis • Pre. v. Post allocated data
- 12. What are “non-traditional” reconciliations? • Subjective definition • Often exist outside of accounting (but not always!) Within Tax team: • Validations related to direct / indirect tax source systems • Apportionment validations • By Entity by Jurisdiction • Transfer pricing related • Transparency into the effects of intercompany activity
- 13. What are “non-traditional” reconciliations? • Subjective definition • Often exist outside of accounting (but not always!) Within IT team: • Operational reconciliations • System-to-system comparisons • Balances • Transactional • Ground-to-Cloud historical data validations
- 14. Close with Confidence Comprehensive Financial Close Financial consolidation Reconciliations and compliance Tax provision and reporting Close process orchestration Transfer pricing Intelligent process automation Narrative reporting and disclosures Connect all planning Close with confidence Reinvent analytics & reporting Outperform with intelligence Operations Marketing Sales Finance HR IT Align enterprise data
- 16. Information Classification: General Selecting a Partner • Current Reconciliation Tool Unsupported • A solution that works across the whole company • Many existing products at State Street (i.e., Frontier, Blackline, Duco, GRS, etc.) • Solution that handles varied scenarios / use-cases
- 17. Information Classification: General Replacing Frontier with Oracle EPM Cloud • Unified platform / licensing • Increase usage across business teams • Stronger data integration • Explore additional non accounting and interface reconciliations • Scalable solution / easier acquisitions • Explore additional account types • Aligned with long term goals • Replacement of older/dated reconciliation systems and manual processes
- 18. Current State Frontier • Matched Items • Exceptions Frontier Operations Team • Frontier Reports Available on Shared Drive Various Internal and External Source Systems Business Teams • Import files • Verify balances and transactions • Run automated matching rules • Performing manual matches • Generate reports • Access Frontier Standardized Reports via Shared Folders
- 19. ARCS Business Teams Various Internal and External Source Systems • Import files • Verify balances and transactions • Run automated matching rules • Performing manual matches • View Results • Submit and Approve Reconciliations Future State
- 20. • System-to-System Reconciliations: • Balance • Transaction • Operational Reconciliations: • One-Sided General Ledger (GL) • One-Sided Demand Deposit Accounts (DDA) • General Ledger vs Banking System High-Level Review of Processes
- 21. System-to-System Reconciliations • ‘Data movement’ control to ensure ‘source’ system is properly interfaced with a ‘target’ system • Sometimes used even if there is no interface • Reconciliation of balances and transactions
- 23. Operational Reconciliations • One-Sided GL: Activity nets with suspense and clearing activity • Have only system-generated activity (translation adjustment). Activity is monitored for manual entries • One-Sided DDA: Activity nets with suspense, clearing, and check clearing activity • GL vs. Banking System: Have bank statement support that can be matched to Oracle GL transactions
- 25. Key Takeaways from Phase 1 Re-Evaluate Full Process • Consolidated Data Files • Adjusted Data Files • Consolidated Match Types Robust User Testing • Dig Into the Details End-to-End • Non-Finance v Finance Timeline & Communication • Global Resources • Multiple Projects / Initiatives • New Policy & Process Together
- 26. Roadmap for Completed • Transaction Matching replaced Frontier • Upgraded from HFM to Consolidation In Flight • Reconciliation Compliance to replace Lotus Notes / Excel template model • (July 1 Tentative Go-Live) • Global Oracle ERP Cloud Implementation Future Projects • Rollout Task Manager
- 27. Strategic Questions and Design Considerations
- 28. Identify Non-Traditional Reconciliations Occurring outside of Finance? Require controls and workflows? Use offline systems for coordination? Contact Your Alithya Consultant if you Experience Symptoms of Non-Traditional Reconciliations “I know it when I see it.”
- 29. Re-evaluate (or Create!) Full Process Compromise between Finance and Non-Finance Formalizing an Informal / Manual Process Workflow Differs Ask for What You Need Providing Consistency and Reliability Requires Consistent and Reliable Data
- 30. Robust User Testing Finding Skeletons “Oh yeah I forgot about that…” Thorough End-to-End Testing Right Users
- 31. Flexible Timeline Prioritize Day 1 Requirements Other System Changes Global Resource Coordination Multiple Project Timelines
- 32. Questions
- 33. > Vendor Presentation: Leading Practices in Multi-Pillar Oracle Cloud Implementations > How Do I Love Cash Flow? Let Me Count the Ways…(11427) > What Did I Miss? Addressing Non-Traditional Reconciliations in AR and Data Integration Design (11513) > Workforce Plus: Tips and Tricks to Give Workforce an Extra Kick! (11415) > Why and How to Implement Operation Transfer Pricing (OTP) with Oracle EPM Cloud (111111) > Integrated Business Processes: A Better Way to Align FP&A Forecast and Management Reporting (11385) > Viasat Launches to the Cloud with Oracle Enterprise Data Management (11486) > ❤️ Matchmaker, Make Me a Match: Can AR Intercompany Matchmaking Tools Be a Perfect Match for You? (11174) > How WillScot-Mobile Mini Utilized Enterprise Data Management for Business Transformation (11489) > See Why This Government Contractor Loves PCM: Live Session with General Dynamics (11395) > How to Allocate Your Close Time More Effectively (11533) > How to Deploy & Integrate Oracle EPM Cloud Profitability and Cost Management (PCM) as an Allocations Sub-Ledger (11109) Don't Miss Our 12 Sessions at Kscope21! Alithya is a platinum sponsor of Kscope21 > Mike Killeen & Zubin Shah, Alithya 6/22/21 | 1:40 - 2:20 PM > Geordan Drummond, Alithya 6/22/21 | 12:40 - 1:40 PM > Seema Shah; Nick Boronski, Oracle, & Lee Divers, State Street 6/23/21 | 12:40 - 1:40 PM > Ryan Ward & Sara Beth Good, Alithya 6/23/21 | 2:20 - 3:20 PM > Andrew Laferla, Alithya & William Harned, MUFG Union Bank 6/24/21 | 11 AM - 12 PM > Alecs Mlynarzek & Vatsal Gaonkar, Alithya 6/24/21 | 2:20 - 3:20 PM > Kevin Black, Alithya & Robert Kursten, Viasat 6/25/21 | 12:40 - 1:40 PM > Geordan Drummond; Nick Boronski & Tim Gaumont, Oracle 6/28/21 | 4 - 5 PM > Kevin Black; Matthew Jacobsen, WillScot Mobile Mini 6/29/21 | 4 - 5 PM > Alecs Mlynarzek, Alithya & Caroline Dill, General Dynamics IT 6/30/21 | 11 AM – 12 PM > Alecs Mlynarzek & Geordan Drummond, Alithya 6/30/21 | 12:40 - 1:40 PM > Andrew Laferla, Alithya 6/30/21 | 2:20 - 3:20 PM
Editor's Notes
- #4: Beginning to wrap-up strawberry picking (Jun, ending in early July) and will then begin blueberry picking (starts mid July)
- #5: (2012) https://www.nrdc.org/experts/dana-gunders/left-out-how-much-fresh-produce-we-grow-never-makes-it-farm
- #13: Sales and Use / VAT taxes - Payment / Liability Proof Apportionment Validations - Source system (payroll, revenue, fixed asset) agrees to GL account by jurisdiction Source system validations - pretax income in FCC/ERP/TR agree by entity For transfer pricing / CbCR, transaction matching is used to match back up the I/C pieces that have been pulled apart due to reporting on a separate country basis exposing I/C gains/losses. "By Entity by Jurisdiction" - I also would not isolate gains/losses - I used gains/losses as an example, but ALL I/C activity is exposed because you are no longer consolidating/eliminating the data. You are looking at it on an entity by entity basis with totals by jurisdiction.
- #15: [[Ask Lee to talk about how there are lots of recons going on]]
- #16: [[Ask Lee to talk about how there are lots of recons going on]]
- #18: State Street is an Oracle company Found a solution that works across the whole company Many existing siloed products at State Street (i.e., Frontier, Blackline, Duco, GRS, etc.) Solution that handles varied scenarios / use-cases
- #26: Importance of data integrations Inclusion of balances Consolidated files No need to send 50 files for the same reconciliation type Find a unique identifier Saves on development, configuration, maintenance, etc. Opportunity to reevaluate process Look at the current process in full Many groups touching reconciliations Non-traditional reconciliations may have different requirements Different from just working with Finance
- #27: [[Ask Lee to talk about how there are lots of recons going on]]
- #30: Sometimes there is no “process” / workflow defined Mixing Accounting-focused System w Non-Finance Processes & People The approach used for finance may be too rigid, but the purpose of the tool is to provide structure
- #31: Get ready for the worst surprise party ever
- #32: Flexible Timeline
- #33: Questions?